BILL NUMBER: AB 847	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 26, 2009

   An act to repeal Section 6396 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 847, as introduced, Charles Calderon.  Sales tax: property
shipped outside state.
   The Sales and Use Tax Law imposes a sales tax on a retailer
measured by the gross receipts from the retail sale in this state of
tangible personal property and a use tax on the storage, use, or
other consumption of tangible personal property in this state of
tangible personal property purchased from a retailer for storage,
use, or other consumption in this state. That law provides various
exemptions from those taxes, including an exemption from sales tax
for a sale of tangible personal property in this state, when the
contract of sale requires that property to be shipped, and it is
shipped, in a specified manner, to a point outside the state.
   Counties and cities are authorized to impose local sales and use
taxes in conformity with the Sales and Use Tax Law, and districts are
authorized to impose transactions and use taxes in conformity with
the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law
are incorporated into these taxes.
   This bill would repeal that sales tax exemption. The retail sale
of tangible personal property in this state would be subject to tax,
regardless of whether a contract of sale requires the property to be
shipped, and it is shipped, to a point outside the state.
   This bill would take effect immediately as a tax levy, but its
operative date would depend on its effective date.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6396 of the Revenue and Taxation Code is
repealed. 
   6396.  There are exempted from the computation of the amount of
the sales tax the gross receipts from the sale of tangible personal
property which, pursuant to the contract of sale, is required to be
shipped and is shipped to a point outside this state by the retailer
by means of: (a) facilities operated by the retailer, or (b) delivery
by the retailer to a carrier, customs broker or forwarding agent,
whether hired by the purchaser or not, for shipment to such
out-of-state point.
   For purposes of this section, the term "carrier" shall mean a
person or firm engaged in the business of transporting for
compensation tangible personal property owned by other persons, and
includes both common and contract carriers. The term "forwarding
agent" shall mean a person or firm engaged in the business of
preparing property for shipment or arranging for its shipment.

  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
However, the provisions of this act shall become operative on the
first day of the first calendar quarter commencing more than 90 days
after the effective date of this act.